Biopharma-Australia can borrow fund in Australia with an interest rate of 11.04% to invest 1.77 million Chinese yuan (CNY) and expected return of CNY2.16 million next year. Assume that Biopharma-Australia and Haier-China engage in a parallel loan in which the Haier-China gives Biopharma Australia CNY1.77 million in exchange for a loan in Australian dollar (A$) at the current exchange rate A$0.2101/CNY. These loans will be repaid by both parties at the end of one year. Assume that next year, Biopharma-Australia will pay the Haier-China 14.42% interest on CNY1.77 million and that the Haier-China will pay Biopharma-Australia 7.31% interest on the Australian dollar loan. Also, Biopharma-Australia believes that the CNY willappreciateto A$0.2832/CNY next year. How much the Biopharma-Australia will make a profit or lossin A$ from this parallel loan agreement in one year?